Which of the follwoing is the better student portfolio? Why?

Question

Portfolio A

10% Large cap value index (VIVAX)

10% Large cap blend index (VFINX)

10% Small cap blend index (NAESX)

10% Small cap value index (VISVX)

20% REIT (VGSIX)

40% International stock index (VGTSX)

Portfolio B

20% REIT (VGSIX)

40% Growth-oriented global fund of index funds (VASGX)

40% Actively-managed global fund (VHGEX)

Answer 1

Frst you should tell your teacher that it is a stupid question.

Unless you know the goal you can't choose the portfolio.

Am I Investing my next years tuition or am I investing for retirement?

and by the way they look like the same basic portfolios:

If it were me I would go look at what is in VASGX - I'll bet it looks alot like those 4- 10% holdings in the 1st choice.

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Based on the clarification of time frame I think the first would be better. The second has too much fixed income

Answer 2

Yea, they're both basically the same. I like VHGEX; it's the best single choice stock fund available.

How about this:

80% VHGEX

20% VGSIX

Answer 3

Portfolio B, you get some additional diversification from the falling dollar by having 80% global with the good performing VHGEX. The four 10% funds are a poor choice if you think the dollar is going to continue to weaken. I don[t believe Portfolio A & B are both basically the same and think a student's time horizon is going to be impacted by a falling dollar.